Economists are:
A) concerned with developing theories but not interested in solving problems.
B) interested in solving problems but not concerned with developing theories.
C) reluctant to predict changes in variables such as prices, employment, and spending.
D) not always in agreement on the best way to implement policy decisions.
Ans: D) not always in agreement on the best way to implement policy decisions.
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What is inflation bias? What measures have governments taken to avoid it?
What will be an ideal response?
In the long run, following a combination of a negative demand shock and a temporary negative supply shock,
A) both inflation and output return to the original long-run equilibrium values. B) inflation is permanently increased, while output returns to potential output. C) output returns to potential output, while inflation may be higher or lower than its initial value. D) inflation is permanently reduced, while output returns to potential output. E) None of the above.
Many of the world's poorest nations have Gini coefficients lower than in the U.S
Indicate whether the statement is true or false
A guarded barbed wire fence separates East and West Bovinia. Soccer players are paid twice as much in West Bovinia as in East Bovinia. This is an example of
a. inelastic supply b. a temporary resource price differential c. a permanent resource price differential d. diminishing marginal revenue product e. economic rent